Annual Report and Accounts 2008
23 Cash and cash equivalents
| 2008 £m |
2007 £m |
|
|---|---|---|
| Cash at bank and in hand | 52.0 | 68.0 |
| Overnight deposits | 3.5 | 14.6 |
| Other short term deposits | 50.4 | 74.6 |
| Cash and cash equivalents | 105.9 | 157.2 |
Cash and cash equivalents include restricted balances of £49.7m (2007: £55.2m) held by the UK Train subsidiaries. Under the terms of the train franchise agreements, cash can only be distributed by the TOCs either up to the amount of retained profits or the amount determined by prescribed liquidity ratios. The restricted cash represents that which is not available for distribution or the amount required to satisfy the liquidity ratio at the balance sheet date.
Cash at bank and in hand earns interest at floating rates based on daily bank deposit rates. Short term deposits are made for varying periods of between one day and three months depending on the immediate cash requirements of the Group, and earn interest at the respective short term deposit rates. The fair value of cash and cash equivalents is equal to the carrying value.